Learn to trade like a criminal

Note: Our fearless leader, Louis Cypher, will be out of commission for awhile, so this site will be less active than usual for the next few months. Warren's piece de resistance on SLV and GLD should be unveiled in early 2012.

Regular readers might recall one of my favorite plays (e.g. here). (And who knows how many similar opportunities I miss, on account of the day job).

When I see the silver mining shares fall precipitously while silver and the market indices are still well in the green, I buy a ton of ZSL. I bought five times my yearly salary's worth today at around 10:40, when I woke up and saw the following: (see black vertical line)

Yup, silver, up almost 2%, but SLW, PAAS, HL (and others) all in the red, up to 3% down (the Dow Jones was up a steady 0.5%, staying out of the red all day). The whistleblower Andrew Maguire had said this was some signal that one group of banksters sends another (I forget exactly the details, nor do i care)

Anyone who scoffs at theories of massive silver manipulation (a group which, incidentally, does not include the Chairman of the CFTC) will miss out on god knows how many similar ways to scalp a quick profit. Unfortunately, blinders, once in place, are difficult to remove. Confirmation bias is a terrible thing.


Kid Dynamite said...

meanwhile, GDX underperformed GLD by 387 bps today... whattup wit' dat' ?

Kid Dynamite said...

oh - ps GM - the banksters send that particular signal only on the first friday 4 months following a blue moon.

otherwise, their signals are sent via secret code when the Cartel rings the opening bell on CNBC - you have to be a member of the Cartel to know which exchange they are giving their signal from though (sometimes its NYSE, sometimes its NASDAQ)...

GM Jenkins said...

Lol KD ... a very palpable hit.